Editor’s Note: I’d previously and organically spoken positively about his logistics operation, going so far as to say: “Larimar Logistics offers a feasible alternative to companies seeking a strategy away from Mexico as a reliable substitute for traditional fulfillment centers with access to U.S. markets while avoiding potential risks arising from the newly imposed tariffs by Mexico.” A partner to 2PM, I have permitted their leadership to publish on this platform and I hope that it helps in your decision-making.
Larimar Logistics Is Rewiring DTC Supply Chains. If you’ve been paying attention, you’ve seen this coming.
Over the past decade, the Dominican Republic has quietly evolved into a critical bridge between global manufacturing and American commerce. Free Trade Zones have matured. Global brands have shifted production out of Asia and into Santiago and San Cristóbal. What began as a cost-saving move has become a strategic necessity, and shifting U.S. tariff policy has only accelerated this change.
Larimar Logistics was purpose-built for this moment: a single partner that combines assembly, transformation, and fulfillment under one roof, enabling brands to ship DTC with zero tariffs and same-week delivery.
Call it what it is: DR is the new 321.
The Macro Shift No Brand Can Ignore
2024 and 2025 mark the beginning of a new trade reality.
- China is officially excluded from Section 321 de minimis eligibility.
- Tariffs on Chinese imports can now exceed 100%, covering everything from apparel to electronics.
- Bonded U.S. warehouses and “workarounds” are under greater scrutiny and cost.
- Even “nearshoring” to Mexico or Canada demands upfront duty payments, complex clawbacks (IMMEX), and administrative friction.
For modern brands, this environment requires more than a freight-forwarding fix. It demands a new model.
Larimar Logistics: One Partner, Three Solutions
Larimar Logistics operates from a Free Trade Zone in Santiago, DR, paired with a U.S. fulfillment facility in Joliet, Illinois. This dual footprint empowers DTC and omnichannel brands with faster turnaround times, lower landed costs, and predictable compliance.
What sets Larimar apart is how it integrates three critical capabilities:
-
Production
Nearshore manufacturing for garments, accessories, and hardgoods, with access to skilled, cost-effective labor. Sourcing spans global suppliers — Asia, the U.S., and Central America — consolidated to deliver a DR Certificate of Origin where possible. -
Assembly & Transformation
Larimar transforms goods to meet HTS shift rules, qualifying products for CAFTA-DR benefits. This legally detaches items from Chinese origin and brings the effective tariff rate to zero — not through loopholes, but through real, compliant transformation. -
Fulfillment
From within the DR Free Trade Zone, Larimar provides deferred-duty importation, fully 321-compliant DTC shipping, and wholesale fulfillment — without clawbacks or hidden fees. Unlike Mexico or Canada, brands avoid upfront duties and maintain full compliance confidence.
DR vs. Mexico vs. Asia: A Practical Comparison
| Category | Asia | Mexico/Canada | Larimar (DR) |
|---|---|---|---|
| Tariff Rate | 46–145% | ~25% | 0–10% |
| 321 Eligible | No | Yes (with clawbacks) | Yes (no clawbacks) |
| Inbound Duties | Paid upfront | Paid upfront | Deferred (FTZ) |
| Transit Time | 30–45 days | 5–12 days | 3–8 days |
| Compliance Risk | High | Medium–High | Low |
| Labor Costs | Low | Medium | Low–Medium |
| Lead Times | Long | Medium | Short |
For DTC brands, these differences are not theoretical — they translate directly into better cash flow, reduced inventory risk, and a stronger margin structure.
More Than Freight: A Supply Chain Re-Architecture
Larimar is not a freight company. It is a vertically integrated, nearshore supply chain platform designed for where modern DTC is headed:
- Faster product drops
- Lower MOQs
- Legal tariff mitigation
- Direct-to-consumer compliance at scale
From blank apparel to branded headwear, from sneakers to sunglasses, Larimar enables real DR-origin manufacturing and finishing — not paper-only workarounds.
Who’s Already Leveraging This Model
Leading brands now partner with Larimar to:
- Source materials globally and finalize production nearshore for 321-compliant fulfillment
- Transform high-tariff categories (footwear, accessories, hardgoods) into DR COO
- Assemble kit-based products for sports, golf, and lifestyle retail
- Scale short-run or POD product lines with same-week shipping to U.S. customers
For brands shipping physical goods to the U.S., this is a competitive advantage in plain sight.
Control, Certainty, Compliance
Many shops operate in the DR — but Larimar uniquely integrates transformation, embellishment, inventory management, and 321 fulfillment into a single, high-compliance operation. Our capital investment, local manufacturing expertise (through D’Clase), and experienced U.S. support team help brands operate confidently in today’s shifting trade climate. Operators don’t have to:
- Settle for fragile Asia-based 321 workarounds
- Lock into long lead times and high MOQs
- Trade cost for compliance
Instead, they gain a true supply chain partner that builds with their team — not around it.
Where DTC Goes Next
Tariffs aren’t going away. Section 321 will keep evolving. Consumers will only expect more, faster. Larimar Logistics is ready. Nearshore. Vertically integrated. Future-proof. For modern brands, DR is the new 321 — and Larimar is the team that makes it real.
Ready to rewire your supply chain?
[Contact the Larimar team →] Or email Scott Geftman for more information: Scott@LarimarLogistics.com